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UNIVERSITY  OF  CALIFORNIA,  SAN  DIEGO 
LA  JOLLA.  CALIFORNIA 


OUR  MONEY 


BY 

ROBERT  S.  MINOT 


PRICE    TEN   CENTS 


BOSTON,    MASS. 

PUBLISHED   BY   DAMRELL   &   UPHAM 

©U  Comer  bookstore 

1896 


Copyright,  1896, 
By  Robert  S.  Minot. 


S.   J.    I»ARKHILL&.    CO..     BOSTON,    U.S.A. 
PRINTERS 


PREFACE 


The  purpose  of  this  article  is  to  apply  the  theory 
of  Monometallism  rigidly,  but  simply,  briefly  and 
practically,  to  the  actual  condition  of  our  "  money," 
so  called.  Monometallism  properly  means  the  use 
of  a  single  principal  metal  as  a  standard.  It  does 
not  necessarily  bar  the  use  of  other  metals  as 
limited  tender,  or  for  fractional  coinage  It  does 
bar  the  use  of  paper  money  other  than  gold  certifi- 
cates as  legal  tender,  but  not  as  current  credits. 
It  is  but  an  application  of  the  general  law  of  fixity 
of  standard  to  money.  The  money  problem  can 
be  solved  only  upon  the  basis  of  Natural  Law. 

R.    S.    MiNOT. 
Boston,  January  15,  1896. 


OUR  MONEY 


The  use  of  money  is  to  measure  values  and  effect 
exchanges,  i.  e.,  buying  and  selling.  The  natural  law  of 
measurement  is  that  the  standard  shall  be  fixed,  whether 
the  measure  be  a  yardstick,  a  quart  pot,  a  pound-weight, 
or  a  dollar ;  so  the  ideal  measure  of  value  or  medium  of 
exchange  must  be  a  fixed  unit.  Such  unit  must  be  a  fixed 
quantity  of  some  selected  commodity  having  intrinsic  and 
stable  value.  The  best  commodity  now  known  for  this 
purpose  is  gold,  chiefly  because  its  value  is  so  universal, 
permanent  and  stable  that  it  has  been  steadily  accumulated 
for  centuries,  practically  without  loss.  However  large  the 
annual  product  may  be,  the  addition  to  these  accumulations 
is  relatively  small,  and  more  or  less  in  proportion  to  the 
growth  of  business.  For  subsidiary  or  fractional  coinage, 
silver,  nickel  and  copper  are  more  convenient  than  gold, 
but  this  article  treats  of  principal  or  standard  money. 

The  value  of  commodities  is  determined  by  the  natural 
law  of  supply  and  demand.  Such  law  being  paramount  to 
constitutional  and  statutory  law,  the  relative  value  of  two 
commodities  cannot  be  fixed  by  legislation,  which  must 
always  prove  abortive  in  such  attempts.  This  is  equally 
true,  whether  the  subject  matter  be  wheat  and  corn,  wool 
and  cotton,  or  gold  and  silver.  Moreover  there  is  no  logical 
distinction  between  bimetallism  and  multimetallism.  If 
two  money  metals  are  better  than  one,  three  must  be 


6  OUR    MONEY 

better  than  two,  and  so  on.  Monometallism,  i.  c,  the  use 
of  a  single  metal  as  a  standard,  accords  with  the  natural 
law  of  the  fixity  of  measure  and  with  the  practice  of  prac- 
tically all  the  civilized  and  prosperous  countries  of  Europe, 
and  of  the  United  States.  The  more  gold  is  used  for 
coinage,  the  less  there  is  for  other  uses,  or  for  ornaments. 
The  most  economical  coinage  is  that  which  requires  but 
one  principal  metal  and  the  least  quantity  of  it. 

The  ideal  coinage  would  be  of  international  gold  units 
universally  current.  Ideally,  the  sole  use  of  paper  money 
is  to  represent  gold  coin  unit  for  unit,  for  convenience 
only.  Gold  circulates  thus  by  proxy  as  effectively  as  in 
itself  and  performs  the  functions  of  circulation  while 
remaining  still  in  one  spot.  It  is  somewhat  like  the  heart 
and  the  blood.  The  pump  remains  in  one  spot  ;  the 
circulation  is  everywhere.  Or  we  may  call  gold  deposited 
at  a  central  point  the  power-house,  paper  the  trolley-wire 
by  which  the  electricity  of  value  circulates  freely  and 
universally. 

Paper  credits  must  be  constantly  distinguished  from 
paper  money.  Paper  money  should  bear  precisely  the  same 
relation  to  gold  coin  that  a  title-deed  does  to  a  lot  of  land. 
The  deed  is  not  the  land,  but  only  evidence  of  title  to  land. 
Paper  money  should  be  evidence  of  title  to  gold  coin  and 
issued  dollar  for  dollar.  The  first  dollar  of  paper  issued  in 
excess  is  the  beginning  of  that  sinister  complication  called 
"inflation."  It  is  the  same  as  issuing  one  hundred  and  one 
title-deeds  to  lots  when  there  are  only  one  hundred  lots. 
That  over-issue  of  one  title-deed  is  the  precise  point  where 
trouble  begins. 

Paper  credits  are  written  or  printed  promises  to  pay. 
A  promise,  whether  verbal,  or  in  black  and  white,  is  an 
agreement  for  future  title.  Even  in  the  case  of  a  demand 
note,  both  borrower  and  lender  customarily  expect  that 
there  v/ill   be  some  interval   between  the  borrowing:  and 


OUR    MONEY  7 

repayment.  The  promise  of  anything  is  not  the  thing 
itself.  Paper  credit  is  not  paper  money,  because  to-morrow 
is  not  to-day.  At  every  given  moment  there  is  a  given 
quantity  of  gold  in  the  world,  and  that  quantity  can  be 
certified  on  paper,  but  cannot  be  increased  by  any  hocus- 
pocus  of  paper  credits. 

The  monetary  system  should  be  entirely  distinct  from 
any  credit  system.  Why  ?  First  :  Because  credits  are 
superfluous  as  a  measure  of  value.  Second  :  Because  they 
are  vicious  for  this  purpose.  The  first  dollar  of  credit 
injected  into  a  monetary  system  is  another  beginning  of 
inflation,  and  is  the  precise  point  where  trouble  begins. 
Ideally,  paper  money  should  be  merely  a  certificate  of  title 
to  gold  coin,  and  although  an  invaluable  convenience,  it 
adds  nothing  to  the  stock  of  money.  But  credits  or  prom- 
ises of  gold  have  no  necessary  fixed  relation  to  the  stock 
of  gold.  If  they  had,  they  would  be  superfluous  as  money. 
(There  is  no  object  in  having  a  yardstick  six  feet  long.)  As 
they  have  not,  they  violate  the  natural  law  of  measure, 
viz.,  fixity,  and  so  vitiate  the  monetary  system.  (There  is 
no  object  in,  but  much  objection  to,  a  yardstick  indefinitely 
long.)  If  there  were  any  advantage  in  having  an  excess  of 
paper  dollars,  it  would  be  equally  effective  and  much 
cheaper  to  print  more  dollars  on  each  piece  of  paper.  It 
is  safer  to  bank  on  gold  than  on  chances. 

Our  National  Bank  Notes  secured  by  Government  bonds 
are  safe  credits,  but  not  money.  An  unlimited  amount  of 
equally  safe  credits  can  be  devised,  based  on  almost  any 
security,  provided  only  that  the  margin  be  suitably 
increased.  A  United  States  bond  with  a  margin  of  ten 
per  cent,  is  no  safer  than  selected  State  bonds  with  twenty 
per  cent,  margin.  City  bonds  with  thirty  per  cent..  County 
with  forty  per  cent..  Railroad  with  fifty  per  cent..  Real 
Estate  mortgages  with  seventy-five  per  cent.,  and  so  on. 
Inflation  almost  ac/  infinitum  ! 


8  OUR    MONEY 

To  summarize :  Government  should  coin  gold  only,  and 
certify  it,  and  make  it  or  its  paper  representative,  and 
nothing  else,  unlimited  legal  tender ;  except  suitable  sub- 
sidiary coinage,  to  be  limited  tender.  Government  should 
also  have  supervision  of  "Current  credits,"  i.  e.,  paper 
credits,  such  as  the  people  choose  to  use  in  business,  pay- 
able to  bearer  and  used  as  currency,  viz..  National  or  State 
Bank  Notes,  so  that  they  shall  be  safe  for  their  purposes 
in  every  one's  hands,  though  not  legal  tender.  Beyond 
this  Government,  whether  National  or  State,  should  not 
establish  or  interfere  with  any  credit  system. 

The  points  sought  to  be  outlined  as  parts  of  a  scientific 
monetary  system  are  as  follows  : 

1.  Monometallism,  or  the  Single  Fixed  Standard.  Gold 
the  sole  principal  money. 

2.  Single  paper  representation,  as  convenience  requires, 
unit  for  unit. 

3.  Free  coinage  of  gold  by  Government.  Sole  un- 
limited legal  tender  (itself  or  by  paper  representative). 

4.  Subsidiary  Coinage.     Limited  legal  tender. 

5.  Monetary  system  distinct  from  credit  system. 

6.  Supervision  by  Government  of  "Current  Credits" 
voluntarily  used  by  the  people  as  money,  e.  g.,  National 
Bank  Notes,  etc. 

7.  Non-interference  by  Government  with  other  credits. 

It  remains  to  consider  the  present  condition  of  our 
"  money,"  (so-called)  from  this  scientific  standpoint  of 
natural  law.  The  statistics  of  our  stock  of  money  Novem- 
ber I,  1895,  are  given  in  Bradstreets'  of  November  9th. 
For  convenience,  the  figures  are  repeated  here  in  the 
nearest  round  millions,  six  zeros  being  omitted,  and  the 
order  of  items  purposely  changed. 


OUR    MONEY 

In 

Circulation,  In  Treasury.  Total  Stock. 

Gold 475  89  564 

Gold  Certificates      ...       50  i  51 

Silver 58  365  423 

Silver  Certificates    .     .     .     333  9  342 

Subsidiary  Silver,  etc. .     .64  13  y"] 

Treasury  Notes  ....      114  27  141 

U.  S.  Notes  (Greenbacks)     239  108  347 

Currency  Certificates  .     .       57  o  57 

National  Bank  Notes  .     .     207  7  214 


Total     .     .     .        1,599         617        2,216 

In  order  to  show  clearly  the  significance  of  these  sta- 
tistics, sample  copies  of  each  of  these  items  are  here  shown 
in  plain  black  and  white — the  gold  and  silver  without 
their  seductive  gleam,  the  paper  without  the  mystery  and 
glamor  of  its  peculiar  fibre  and  coloring. 

GOLD  EAGLE. 

United  States  of  America. 

In  God  we  trust. 

Ten  Dollars. 

GOLD  CERTIFICATE. 
This  certifies  that  there  have  been  deposited  in  the  Treasury  of  the 
United  States,  Fifty  Dollars  in  gold  coin  repayable  to  bearer  on  de- 
mand. 

SILVER  DOLLAR. 

United  States  of  America. 

In  God  we  trust. 

One  Dollar. 

SILVER  CERTIFICATE. 
This  certifies  that  there  have  been  deposited  in  the  Treasury  of  the 
United  States  Five  Silver  Dollars,  payable  to  the  bearer  on  demand. 

SUBSIDIARY  COINAGE. 
[Not  worth  copying  for  present  purposes.] 


lO  OUR    MONEY 

TREASURY  NOTES. 
The  United  States  of  America  will  pay  to  bearer  Two  Dollars  in 
Coin. 

REVERSE. 

This  note  is  a  legal  tender  at  its  face  value  in  payment  of  all  dues, 
public  and  private,  except  when  otherwise  expressly  stipulated  in  the 
contract. 

U.  S.  NOTES.     (LEGAL  TENDERS  OR   GREENBACKS.) 
The  United  States  will  pay  to  bearer  Fifty  Dollars.     This  note  is 
a  legal  tender  at  its  face  value  for  all  debts  public  and  private  except 
duties  on  imports  and  interest  on  the  public  debt. 

CURRENCY  CERTIFICATES. 

CERTIFICATE   OF   DEPOSIT. 

It  is  hereby  certified  that  Ten  Thousand  Dollar's  have  been  de- 
posited with  the  Assistant  Treasurer  of  the  United  States  payable  in 
United  States  Notes  on  demand  at  his  office  to Bank  or  order. 

NATIONAL  BANK  NOTES. 

NATIONAL   CURRENCY. 

Secured  by  United  States  Bonds  deposited  with  the  Treasurer  of 
the  United  States. 

The National  Bank   of will   pay  the  bearer  on  demand 

Ten  Dollars.     (City.)     (State.)     (Date.) 

This  note  has  the  fac-simile  of  the  signatures  of  the 
Treasurer  of  the  United  States  and  the  Register  of  the 
Treasury,  and  of  the  President  and  Cashier  of  the  Bank. 
It  is  not  worth  while  for  present  purposes  to  give  the  de- 
vices and  numbers. 

REVERSE. 

This  note  is  receivable  at  par  in  all  parts  of  the  United  States  in 
payment  of  all  taxes  and  excises  and  all  other  dues  to  the  United 
States,  except  duties  on  Imports,  and  also  for  all  Salaries  and  other 
debts  and  demands  owing  by  the  United  States  to  individuals,  cor- 
porations and  associations  within  the  United  States,  except  interest  on 
public  debt. 

There  is  also  a  clause  relating  to  counterfeiting,  not 
material  here. 


OUR    MONEY  II 

Applying  the  monometallic  theory  rigidly  to  the  actual 
condition  of  our  money,  wliat  are  the  necessary  conclu- 
sions ?  The  total  actual  gold  coin,  564  millions  of  dollars, 
amounting  to  but  little  over  one-quarter  of  our  total  nomi- 
nal stock  of  money,  is  nevertheless  our  sole  principal 
money !  Even  adding  the  subsidiary  coinage  (without 
examination  or  discussion  here),  seventy-seven  millions, 
makes  our  total  stock  of  true  money  641  millions,  or  not 
quite  three-tenths  of  our  total  nominal  stock.  Not  a  dollar 
more  is  true  money!  The  gold  certificates  are  merely 
titles  to  gold  dollars. 

Of  the  remaining  nominal  stock,  the  actual  silver  coin, 
423  millions,  amounts  to  nearly  one-fifth  of  the  total  nomi- 
nal stock.  This  is  false  money.  The  silver  certificates 
are  properly  mere  titles  to  silver  dollars. 

The  Treasury  notes.  Acts  of  1890,  differ  from  the  silver 
certificates  in  that  they  are  issued  against  silver  bullion 
instead  of  silver  dollars.  Practically  they  are  warehouse 
receipts  for  "pig"  silver  strangely  transmuted  into  ambig- 
uous promises  to  pay  "in  coin."  They  are  at  least  equally 
as  vicious  as  the  silver  certificates,  if  not  more  so,  being 
full  legal  tender  unless  otherwise  expressly  stipulated  in 
the  contract.  The  Government  has  been  practically  com- 
pelled to  redeem  them  in  gold  at  the  holder's  option. 

There  is  no  greater  distinction  between  bimetallism  and 
multimetallism  than  between  bigamy  and  polygamy.  The 
moral  and  natural  law  of  conjugal  unity  is  violated  by 
having  more  than  one  wife.  The  natural  law  of  financial 
unity  {i.  e.,  fixity  of  measure)  is  violated  by  using  more 
than  one  metal  as  a  standard.  There  are  numerous  metals 
more  precious  than  either  gold  or  silver,  and  quite  as  fit  as, 
or  perhaps  fitter  than  the  latter  for  financial  polygamy. 

Apart  from  tradition  and  sentiment,  how  does  our  silver 
folly  appear  .''  Our  Government,  probably  through  corrup- 
tion, has  speculated  in  "  pig"  silver.     It  has  put  less  than 


12  OUR    MONEY 

a  dollar's  worth  of  bullion  into  each  coin  and  stamped  a 
falsehood  on  it — "One  dollar,"  —  and  compelled  the 
people  to  accept  it.  It  has  attempted  a  forced  composition 
with  its  own  creditors  for  a  percentage,  and  to  compensate 
them  by  empowering  them  to  compound  with  their  cred- 
itors on  the  same  percentage  basis.  Thus  modern  Amer- 
ican Democracy  has  gone  back  to  the  semi-barbarous 
standards  of  coin-clipping  monarchies  long  since  effete. 
It  has  had  to  repudiate  this  falsehood,  and  stand  ready  to 
pocket  the  loss  on  every  silver  dollar,  by  redeeming  in  gold. 
Thus  the  Government  is  where  it  started,  with  a  trifling 
exception,  i.  e.,  it  has  the  "pig"  silver  on  hand  in  bullion 
or  coin,  but,  as  frequently  happens  in  speculation,  it  is  no 
longer  worth  what  it  cost.  The  way  out  is  as  usual  the 
reverse  of  the  way  in,  viz.,  to  sell  the  silver  for  gold,  and 
pocket  the  loss  if  any. 

Our  circulation  has  been  poisoned  by  silver,  and  although 
we  have  stopped  taking  poison,  because  it  has  made  us 
deadly  ill  and  weak,  yet  our  health  cannot  be  fully  restored 
until  our  financial  system  has  been  thoroughly  freed  from 
silver.  Our  doctors'  bills  have  been  tremendously  heavy, 
because  we  would  not  take  good  financial  advice  and  medi- 
cine before  we  became  ill,  but  relied  on  quacks. 

The  United  States  Notes,  commonly  called  "legal 
tenders"  or  "greenbacks,"  were  originally  issued  during 
the  war,  practically  as  a  forced  loan  or  in  forced  payments, 
and  amount  to  347  millions.  They  are  virtually  irredeem- 
able promises,  as  they  are  perpetually  reissued  according 
to  law.  They  are  mere  current  credits  and  not  money. 
They  have  no  definite  relation  to  gold,  either  as  to  quantity 
or  quality,  except  by  statute,  which  has,  however,  limited 
their  power  for  evil.  The  Government  has  been  compelled 
to  redeem  these  in  gold  on  demand,  and  has  had  to  borrow 
gold  in  order  to  pay  gold.  It  requires  a  large  bucketful 
to  outlast  a  perpetual  leak  in  the  bottom. 


OUR    MONEY  13 

The  Currency  Certificates,  fifty-seven  millions,  simply 
represent  deposits  of  these  "legal  tenders"  or  "green- 
backs "  in  large  amounts,  and  are  chiefly  used  in  the  larger 
cities  in  settlements  between  banks.  They  are  a  certifi- 
cate of  deposit  of  a  current  credit,  and  not  money. 

The  National  Bank  Notes  amount  to  214  millions,  and 
are  simply  promises  of  National  Banks  to  pay  on  demand, 
and  are  secured  by  deposits  of  other  promises,  viz..  United 
States  bonds  or  "greenbacks,"  with  the  United  States 
Treasurer.  They  are  not  strictly  legal  tender,  but  are 
receivable  by  the  United  States  for  all  dues  except  import 
duties,  and  payable  by  the  United  States  for  all  dues 
except  interest  on  the  public  debt.  They  are  current 
credits,  not  money. 

Our  situation  is  most  conveniently  summarized  in  tabular 
form  (with  the  assumption  that  our  subsidiary  coinage  is 
scientific,  which  may  not  be  the  case). 


Analytical  Table, 

Millions  of        Per  cent,  of  Total  nominal 
Dollars.  stock  of  money. 

True  Money. 

Gold 564 

Subsidiary jy 

Total      .     .     ,     641 

False  Money. 
Silver 423 

Titles  to  Coin. 

Gold  Certificates  ...  51 
Silver  Certificates  .  .  .  342 
Treasury  Notes  ....     141 

Total      ...     534 


14  OUR    MONEY 


Millions  of         Per  cent,  of  Total  nominal 
Dollars.  stock  of  money. 


Current  Credits. 

U.  S.  Notes  (Greenbacks)  347 
Currency  Certificates  .  .  57 
National  Bank  Notes  .     .     214 


Total      ...     618 

Suinf)iary. 

True  Money 641  nearly  30  per  cent. 

False  Money 423  "       20         " 

Titles  to  Coin      ....     534  "       25         " 

Current  Credits  ....     618  "       30         " 


Total      .     .       2,216 

So,  less  than  three-tenths  of  our  total  nominal  stock  is 
true  money.  Nearly  two-tenths  stand  for  a  silver  specula- 
tion resulting  in  a  heavy  loss.  Nearly  one-fourth  is  mere 
titles  to  coin,  and  nearly  three-tenths  is  paper  credits.  We 
cannot  use  a  dollar  of  silver  or  paper  outside  of  the  United 
States.  Therefore  all  our  foreign  trade  not  settled  for  in 
merchandise  or  securities  must  be  settled  for  in  gold.  So, 
whenever  the  cash  balance  is  adverse,  gold  flows  out  of 
necessity.  Poor  money  invariably  drives  out  good  money. 
(Great  Britain  will  always  stand  ready  to  take  our 
oyster,  if  we  are  perfectly  satisfied  to  keep  the  shell.) 
Our  people  must  have  thus  only  silver  and  paper  left,  if  ever 
the  outflow  of  gold  is  complete.  But  before  the  outflow 
is  complete,  as  between  our  people  and  our  Government, 
a  man  must  be  both  a  great  patriot  and  a  greater  fool  to 
prefer  his  own  ruin  to  the  bankruptcy  of  the  Government, 
if  it  finally  persists  in  turning  a  deaf  ear  to  his  repeated 
and  urgent  friendly  warnings. 

Now  our  Government  has  been  practically  compelled  to 
redeem  all  the  silver  and  paper  in  gold,  and  the  demand 


OUR    MONEY  15 

of  our  own  people  for  gold  has  been  constant.  What  can 
it  do  when  gold  goes  out  to  settle  adverse  foreign  balances 
or  home  demand,  but  borrow  it  back?  The  risk  of  in- 
solvency (as  to  gold  payments)  is  thus  perpetual.  The 
Government  has  already  been  borrowing  during  the  past 
two  years,  in  order  to  stave  off  this  impending  insolvency. 
But  borrowing  is  itself  the  royal  road  to  insolvency.  It 
has  lately  passed  162  million  more  mile-posts !  And  the 
end  is  not  yet. 

Yet  how  simple  is  the  remedy !  The  way  out  is  the  way 
in,  reversed.  Our  Government  has  bought  silver  on  specula- 
tion. It  might  just  as  well  have  speculated  in  aluminum  on 
a  falling  market.  It  has  lost  heavily.  It  has  even  thought 
of  making  the  loss  good  by  coining  it!  How  rich  we 
might  all  become  by  coining  our  losses  under  a  free  coin- 
age system  !  The  only  honest  and  strong  way  out  is  to 
sell  the  silver  for  gold  gradually,  without  undue  sacrifice, 
considering  its  resources  and  credit. 

So  as  to  the  paper.  It  was  issued — ^now  retire  it.  This 
can  be  done  at  once,  though  it  would  be  wiser  to  do  it 
gradually. 

Our  Government  could  easily  borrow,  now  or  from  time 
to  time,  the  necessary  1^500,000,000  or  so,  at  two  and  one- 
half  per  cent.,  if  it  would  cancel  the  greenbacks,  silver 
certificates  and  treasury  notes  for  ever.  The  only  differ- 
ence would  be  $12, 500,000  annual  interest  —  a  paltry  price 
to  pay  to  exchange  threatened  insolvency  for  first-class 
credit,  poor  business  for  prosperity,  low  wages  for  high 
wages.  It  has  already  borrowed  162  millions  to  carry  out 
insane  financial  theories,  lost  it,  and  must  soon  borrow 
more.  It  would  better  borrow  500  millions  in  order  to  carry 
out  a  sound  theory,  settle  old  scores  forever,  and  avoid 
further  losses.  Tens  of  millions,  or  rather  hundreds  of 
millions  of  foreign  capital  would  flow  into  this  country, 
if  it  would   turn    forever   from   all  that  is   unsound  and 


l6  OUR    MONEY 

dishonest  {whether  by  intention  or  not)  in  its  present 
financial  situation.  It  is  better  to  walk  on  solid  ground 
than  to  sail  high  in  a  bursting  balloon.  The  wholesome 
example  of  the  public  repudiation  of  inflation  would  lead 
us  all  to  think  and  plan  more  soundly  and  conservatively. 
Conservatism  is  the  mother  of  progress.  A  poor  dollar 
makes  a  poor  man.  The  man  armed  with  the  best  dollar 
is  armed  with  the  best  gun  in  the  battles  of  industry  and 
commerce.  Gold  is  none  too  good  for  us.  It  may  be  a 
luxury  to  the  rich  and  the  strong,  but  it  is  a  necessity  to 
the  poor  and  the  weak.  This  is  as  true  between  nations 
as  between  individuals. 

It  is  idle,  worse  than  idle  —  it  is  a  national  crime,  to  try  to 
escape  insolvency  by  more  borrowing,  unless  we  borrow 
good  dollars  to  cancel  and  destroy  bad  ones  forever.  It  is  a 
temporary  and  inadequate  remedy  to  try  to  prop  up  our 
shaky  financial  structure  by  more  revenue.  There  is  but 
one  sound  and  thorough  remedy,  viz.  :  to  replace  every 
weak  and  rotten  part  of  the  structure  with  sound  material, 
especially  in  the  foundation.  The  larger  the  building,  the 
more  need  to  obey  the  natural  law  of  gravitation  in  its 
construction.  The  larger  our  affairs  and  interests,  the 
more  need  to  obey  the  natural  laws  of  financial  health, 
which  are  as  inexorable  as  those  of  gravitation.  It  is  idle 
for  us  to  claim  to  be  either  honest  or  intelligent  in  finance, 
until  we  are  so  imbued  with  the  spirit  of  obedience  to 
these  laws  that  neither  can  our  intentions  be  questioned 
nor  our  conduct  criticised.  Our  national  character  is  at 
stake.  Unless  and  until  we  attach  definitely  and  perma- 
nently the  right  meaning  and  value  to  the  word  "dollar," 
we  practically  confess  to  the  civilized  world,  that  American 
Democracy  is  a  failure,  and  Universal  Suffrage  a  humbug. 


AA    001  023  066   2 


